PHOTO: Townsville’s Rowes Bay 

Two-thirds of Australians buying an investment property picked one close to where they live, and not in another suburb that could potentially outperform their home suburb in the long run, according to a new report co-authored by University of Sydney finance lecturer Danika Wright.

“The explanation for home bias … is a familiarity bias, lack of sophistication, knowledge or education and momentum behaviour,” the report harshly suggested.

The academics argued that putting all the eggs in one basket was riskier for the individual investor and also the economy.

The home bias preference was seen when NRL legend Johnathan Thurston and wife Samantha recently expanded their already impressive investment portfolio, with another north Queensland buy.